Despite the fact that digital tools such as AI advisors are becoming increasingly available, investors are still seeking out human financial advisors.
Key Takeaways:
- Even though AI advisory tools are becoming more prevalent, a new white paper from Cerulli Associates shows wealthy investors still see the value of human advisors.
- The Cerulli report revealed that, between 2009 and 2025, the amount of wealthy investors who consider themselves advised has increased from 35% to 50%.
- Furthermore, many remain highly satisfied, with 67% of respondents saying they are happy with their provider and not seeking a new one.
A new white paper from Cerulli Associates examined what’s going on with registered investment advisors (RIAs) as of late. As the Cerulli white paper pointed out, between the years 2009 and 2025, the amount of investors that have more than $250k in investable assets and consider themselves advised has grown from 35% to 50%. Cerulli cited this data through the Cerulli Affluent Investor Tracker.
Likewise, the amount of investors in that range who label themselves as self-directed has followed suit. Between 2009 and 2025, the amount of self-directed investors tracked by Cerulli has fallen from 41% to 23%. The digital tools that can help investors with financial advice can be beneficial, sure, but it’s clear that the value advisors bring to the table is being recognized.
More and more advisors are managing significant piles of assets, too. As Cerulli noted, the amount of RIAs is on the rise, with the count of RIAs managing over $5 billion in assets growing from 194 to 343 over the past five years alone.
Why are investors leaning into human advisors so much? Well, the Cerulli white paper has a few answers for that. Cerulli surveyed affluent investors who have over $250k in investable assets, or those who are under the age of 40 with at least $125k in annual income, on the most important reason to have a human advisor as part of a provider relationship.
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The Advantages of Human Expertise
The top answer is that investors feel more comfortable working alongside a human advisor, with 28% selecting that as their choice. Second on the list was the desire to ask specific questions, which accounted for 20% of respondents. In third place was the preference to maintain a strong ongoing relationship with one’s advisor, which constituted 19% of investor responses.
Those who have already chosen a financial advisor have generally been satisfied with their decision. Cerulli finds that 67% of respondents are happy with their primary provider and are not seeking a new one.
Meanwhile, 31% of affluent investors reported being satisfied with their provider, but would be open to considering a different option. Only 2% of Cerulli’s respondents reported being not satisfied.
A Fiduciary Factor
Noticeably, the distinction of whether one worked with a fiduciary or not seemed to matter. 73% of investors responded that they were satisfied with the care they were receiving while working with a fiduciary. Inversely, only 48% of those not working with a fiduciary are satisfied with the services they have received thus far.
Of course, the distinction between a fiduciary and a non-fiduciary matters. Fiduciaries always must act in the best interests of their clients, which can naturally help these firms increase client satisfaction.
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"Investors shouldn't have to be experts in the wealth management industry to understand who they're trusting with their financial lives," noted David Hefty, CEO of Credent Wealth Management. "They should know how their advisor is paid, where potential conflicts may exist and whether that advisor is required to act as a fiduciary. As investors have more firms to choose from, asking those questions upfront becomes even more important."
Putting this all together, wealthy investors are continuing to lean into the advantages of human financial advisors, even as new digital tools come to the forefront. This should give advisors more confidence that what they’re offering to the investment community is both valuable and necessary.
Furthermore, the sheer scale of investors that report being satisfied with their provider is noticeable. That being said, the standards that a fiduciary brings to the table do seem to have a noticeable effect on client satisfaction.
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